FX.co ★ The Crude oil - Mathematical analysis with Murray lines for September 18, 2013

Daily chart

Yesterday crude oil closed the day reaching a low of 104.96. At this point it is bouncing hard and having won an average of 120 pips again it places it on line 6/8 (red line) located at 106.25. It gives us a new perspective and also bullish outlook amid the previous minimum at support area on the bottom line of its trend channel.

With the retreat of possible military action in Syria, attention turned to the outcome of the two-day meeting of the Federal Reserve, with expectations of a reduction of the $ 85 billion per month bond purchases, known as flexible quantitative (QE). Something that will certainly influence not only on the crude oil and all its derivatives.

4-hour chart

On the 4-hour chart we see the formation of the figure known as inverted head and shoulder and although the picture in this time frame seems to remain bearish candle closing complete the 106.25 level it could be the indicator of a change in the trend of crude Oil and generate continued upward trend. Bearing in mind that prices are climbing from the area - 2/8 - 1/8 overrun areas considered end our suggestion is that we can get buying up 106.25 at the opening of the next bullish candle above this level after the complete closure of a bullish candle. Our stop loss should be at 104.69.

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